Bank of America profits fall 43% in Q2 2014

Bank of America has reported a 43% drop in its quarterly profits after a fall in mortgage revenue and a rise in legal costs.

The US’s second largest bank said net income of $2.3 billion in Q2 2014 was down from $3.4 billion a year earlier.

Its finances have been hit recently by huge payments to the authorities to fend off accusations of wrong-doing.

In 2013, Bank of America’s shares have fallen from 32 cents to 19 cents per share.

In April the bank agreed to pay $9.5 billion for misleading US mortgage lenders Fannie Mae and Freddie Mac before the financial crisis in 2008.

It then agreed separately to pay $783 million in fines and refunds, for mis-selling payment and identity theft insurance to nearly three million credit card customers.

Bank of America’s chief financial officer Bruce Thompson acknowledged the rise in litigation costs and praised the bank for doing “a good job managing expenses”.

Bruce Thompson also said that during the quarter the bank’s credit losses remained “near historical lows”.

Bank of America’s results come as analysts have noted a split in the US lenders’ quarterly results between banks that cater mainly to US customers and those with a more prominent global presence.